www.ctcentral.com/site/news.cfm?newsid=18374513&BRD=165 -
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Published on: 5/23/2007
Last Visited: 5/24/2007
"(Debt collection complaints) are extraordinarily common," said Dan Blinn, Connecticut coordinator of the National Association of Consumer Advocates and managing attorney of Consumer Law Group in Rocky Hill.
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"Debt collectors are not allowed to have discussions with third parties (family members or co-workers) except to locate the debtor," Blinn said."For example, a collector cannot call your neighbor if you don't answer your phone.That happens a lot."
Legitimate ways to gather location information, Blinn and Dorman said, include obtaining credit reports, consulting with the original creditor, and contacting third parties, but only to find out the place of residence, phone number and place of employment.
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"Collectors are not allowed to speak to anyone else (other than the debtor or their attorney) about the debt," said Blinn, who was chairman of the consumer law section of the Connecticut Bar Association for seven years.
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In the event an alleged debtor believes a collector has committed a violation, Blinn said there are a number of options.
Consumers have the right to request in writing that debt collectors stop contacting them, Blinn said.Collectors may not contact consumers after receiving this request unless to notify them that contact will cease or that a specific action will be taken.
Blinn also recommends filing a complaint with the Federal Trade Commission.
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"(Consumers) can sue for any actual damages, including emotional distress, and up to $1,000 in additional damages, plus attorney fees," Blinn said.
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Blinn said suing violating debt collectors is a necessary way of enforcing the Fair Debt Collection Practices Act."(Collection agencies) create an atmosphere where there are incentives to break the rules," Blinn said."There have to be repercussions.Lawsuits are the primary deterrent to keep them from crossing the line."
If the collector gets sued enough, Blinn said, then breaking the law is no longer as profitable.
"The reason they do it is because it works," Blinn said.
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Blinn sees three factors that have caused consumer complaints against debt collectors to spike in recent years: the change in bankruptcy law in October 2005, people's increasingly dire financial straits and the growing field of debt collection.
"After the Bankruptcy Reform Act, it became harder for people to discharge debts in a bankruptcy liquidation," Blinn said."There used to be a fear (among collectors) that a debtor is going to file for bankruptcy, so collectors didn't want to push them too hard or they wouldn't get their money.
"Now, (collectors) feel liberated to push a little harder."Blinn said a growing number of people are in trouble, and there are more people who owe more money due to loss of employment, divorce or illness.Also, a much more liberal credit industry has compounded the problems.
"Credit is being extended to people who, 20 years ago, would not have been approved," Blinn said.
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